Ahead of the Market: 10 Things That Will Decide Your Stock Trading Monday
The Nifty 50 index rose 0.69 per cent to 22,147, while the S&P BSE Sensex rose 0.83 per cent to 73,088, rising for the first time this week. However, it fell by about 1.6% during the shortened holiday week.
Here’s how analysts read the market pulse.
“Technically, the setup is slightly negative at this point with Nifty below the important resistance zone of 22,300-350. A crossover above this zone is needed for the bulls to get back in the game. Immediate close Nifty above 22,300-350 level Support is now seen at 22,000 and higher at 21,700-800, while the immediate resistance area for Nifty is 22,150-175 level and the next important resistance area is 22,300-350 level. You need to have a market in place,” said Tejas Shah of JM Financial & BlinkX.
Rupak De of LKP Securities said, “Going ahead, strength could lead Nifty’s recovery towards 22,300. Moreover, a decisive break above 22,300 could trigger a sustained rally towards 22,600. On the downside, the closing support is at 22,000. “He said.
That said, let’s take a look at some key indicators that suggest action on Monday.
american market
The Nasdaq and S&P 500 closed lower on Friday as Netflix stock fell, but American Express held on to the Dow after the two companies’ quarterly results, and sentiment was dampened by growing pessimism that the Federal Reserve would soon cut interest rates. The S&P 500 was down 3.05%, the Nasdaq was down 5.52% and the Dow was up 0.01%. The S&P suffered its largest weekly decline since March 2023, and the Nasdaq recorded its largest decline since the week of October 31, 2022.
european stocks
European stocks closed lower on Friday, but anxiety over rising tensions in the Middle East appeared to have eased, and French cosmetics giant L’Oréal posted its best day since early January after a solid performance.
The continent-wide STOXX 600 index closed 0.1% lower, but posted its biggest weekly decline since mid-January of 1.2% as renewed interest in geopolitical tensions prompted investors to avoid a rout in risk assets and technology stocks.
Tech View: Bullish reversal pattern
On Friday, Nifty closed 151 points higher after four consecutive days of decline and formed a bullish reversal pattern on the daily chart.
The psychological support of 22,000 remains intermediate support, followed by the 21800-21700 sub-area as strong support. On the higher side, the 20-DEMA located at 22300 and the bearish gap at 22430-22500 are likely to pose a challenge in the near term and an authoritative breakout could only re-energize the lost momentum for the bulls. Osho Krishan of D-Street’s Angel One said.
Stocks with a bullish bias
Momentum indicator Moving Average Convergence Divergence (MACD) showed bullish trading on counters including Kalpataru Power, Linde India, JSPL, Chennai Petro, HUL and Power Grid.
MACD is known to indicate a trend reversal in a traded security or index. When the MACD crosses above the signal line, it sends a bullish signal, indicating that the price of the security may rise and vice versa.
Stocks predict weakness ahead
MACD showed bearish signs on counters SAIL, Syngene International, Nykaa, Karur Vysya Bank, Balkrishna Industries and BHEL. A bearish crossover in the MACD of this counter indicates that it has just begun its downward journey.
Most Active Stocks by Value
Infosys (Rs 288.6 billion), HDFC Bank (Rs 261.8 billion), RIL (Rs 230 billion), Axis Bank (Rs 218.2 billion), Bharti Airtel (Rs 167.5 billion), Tata Motors (Rs 147 billion) and Bajaj Auto ( Rs. 1,219 crore) was one of the most active stocks on the NSE in terms of value. The higher activity of a counter in terms of value can help identify which counters have the highest turnover for the day.
Most active stocks by trading volume
Tata Steel (traded shares: KRW 6 billion), ONGC (traded shares: KRW 3.2 billion), Axis Bank (traded shares: KRW 2.1 billion), Infosys (traded shares: KRW 200 million), Power Grid (traded shares: KRW 1.9 billion), HDFC Bank (Shares traded: 1.7 crore) and ITC (Shares traded: 1.6 crore) were among the most traded stocks in the NSE session.
Stocks showing interest in buying
Shares of Elecon Engineering, Motilal Oswal, Just Dial, KSB, Godawari Power, Kalpataru Power and Linde India witnessed strong buying interest from market participants as they touched new 52-week highs, indicating bullish sentiment.
Stocks under selling pressure
Shares of Bandhan Bank, Bata India and Asian Paints hit 52-week lows, indicating bearish sentiment in the market.
Sentiment Meter Favors Bears
Overall, market breadth favored weakness with 2,127 stocks ending in the red and 1,662 stocks ending in the green.
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own and do not represent the views of The Economic Times.)
